Human Resource

Management
 Why do people make the
difference?
 Human capital is essential to any
organization’s long-term performance
success.
 Organizations perform better when they
treat their employees better.
 Human resources are key to organizational
success or failure.
Why do people make the
difference?
 Building high performance work environments depends
on having people with the following qualities:
– Knowledge
– Creativity
– Motivation
– Sincerity
– Outlook
– Curiosity
– Judgment and maturity
– Integrity
– Work ethic
– Ambition and energy
 Basic HR Concepts
• The bottom line of managing:
Getting results
• HR creates value by engaging in
activities that produce the employee
behaviors that the company needs to
achieve its strategic goals.
Human Resource Management at
Work
• Human Resource Management (HRM)
– Activities that managers engage in to attract
and retain employees and to ensure that they
perform at a high level and contribute to the
accomplishment of organizational goals.
• Human Resource Management (HRM)
– The policies and practices involved in carrying
out the “people” or human resource aspects of
a management position, including recruiting,
screening, training, rewarding, and appraising.
 Strategic Human Resource
Management
– The process by which managers design the
components of a human resource system to be
consistent with each other, with other elements
of organizational structure, and with the
organization’s strategy and goals.
• The objective of strategic HRM is the
development of an HRM system that
enhances the organization’s efficiency,
quality, innovation, and responsiveness to
customers.
Components of a Human Resource
Management System
 The Human Resource
Management Functions

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INTERNAL ENVIRONMENT
Legal Considerations

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 HR Managers Responsibilities
 Major human resource management
responsibilities:
– Attracting a quality workforce
• Human resource planning, recruitment, and selection
– Developing a quality workforce
• Employee orientation, training and development, and
performance appraisal.
– Maintaining a quality workforce
• Career development, work-life balance, compensation
and benefits, employee retention and turnover, and
labor-management relations.
 HR Managers
1.
Responsibilities
Placing the right person on the right job
2. Starting new employees in the organization
(orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth
working relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
 HR Management Roles
• Administrative role for HR
• Employee advocate role for HR
• Operational role for HR
• Strategic role for HR
 Different Roles of HR
Management

• Strategic: As
business contributor
•Operational: Manages most
HR activities
•Employee Advocate: Services as
morale officer
•Administrative: Focuses extensively on administration
Overview of HR Management Roles

Ad

Focus
 HR Management Challenges

• Economic and technological change

• Workforce availability and quality co
• Demographics and diversity issues
• Organizational restructuring
 HR Management Activities
The central focus for HR management must
be on contributing to organizational success.
The key to enhancing organizational
performance is ensuring that human
resources activities support organizational
efforts focusing on
• Productivity
• Service, and
• Quality.
Shifts in HR Management
 Evolution of HR Management
• 1930s TO 1950s :In the 1930s, the passage of
several major labor laws, such as the National
Labor Relations Act of 1935, led to the growth
of unions.
• The importance of collective bargaining and
union/management relations following the labor
unions’ rise to power in the 1940s and 1950s
expanded the responsibilities of the personnel
area in many organizations, especially those in
manufacturing, utilities, and transportation.
• Such work as keeping payroll and retirement
records, arranging stockholder visits, and
organizing company picnics was often the
major role of personnel departments.
• The role of the HR department in the
organization as a staff function to support
operational (line) departments expanded
during this period, and line/staff issues grew
to influence HR departments in the following
decades.
• 1960s TO 1980s:Increased legal requirements and
constraints arising from the social legislation of the
1960s and 1970s forced dramatic changes in the HR
Management—Strategies and Environment
departments of most organizations. HR departments
had to become much more professional and more
concerned about the legal ramifications of policies and
practices. Also, organizations took a new look at
employee involvement and quality of work as a result of
concerns about the impact of automation and job
design on worker productivity.
• During the 1980s, the strategic role of HR management
became essential as organizations reduced staff, closed
plants, or “restructured.” Outplacing employees and
retraining the rest became prime concerns of HR
departments. Containing the costs of health-care
benefits also grew in importance.
• 1990s During the 1990s, organizational
restructuring continued.
• The HR managers of the future will need to be
more strategic and proactive.
• Changing demographics and increasing shortages
of workers with the needed capabilities have grown
in importance. Related to the demographic shifts,
HR management has had to address the issues and
implications of workforce diversity.
• Both the outsourcing of HR activities and the
computerization of the administrative aspects of
HR activities, even in small firms, have received
attention as well.
 HRM ACTIVITIES
• Job analysis defines a job in terms of specific tasks and
responsibilities and identifies the abilities, skills and qualifications
needed to perform it successfully.
• Human resource planning or employment planning is the process
by which an organisation attempts to ensure that it has the right
number of qualified people in the right jobs at the right time.
• Employee recruitment is the process of seeking and attracting a
pool of applicants from which qualified candidates for job vacancies
within an organisation can be selected.
• Employee selection involves choosing from the available candidates
the individual predicted to be most likely to perform successfully in the
job.
 HRM ACTIVITIES (cont)
• Performance appraisal is concerned with determining how well
employees are doing their jobs, communicating that information to the
employees and establishing a plan for performance improvement.
• Training and development activities help employees learn how to
perform their jobs, improve their performance and prepare themselves
for more senior positions.
• Career planning and development activities benefit both employees
(by identifying employee career goals, possible future job opportunities
and personal improvement requirements) and the organisation (by
ensuring that qualified employees are available when needed).
• Employee motivation is vital to the success of any organisation.
Highly motivated employees tend to be more productive and have lower
rates of absenteeism and turnover.
Job Analysis